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Nintendo: Must differentiate From iPhone

Is Nintendo finally feeling the heat from Apple? That may or may not be the case, depending on who within Nintendo is asked the question. Nintendo president Satoru Iwata claims that Nintendo and Apple aren't competitors. He even insists that there will be no rivalry between both companies, calling it "uncomfortable."

But he's also aware that Apple's iPhone and iPod Touch bring a different kind of competition to the table, providing cheap, immediate access to games unlike previous rivals. As of now, Sony's PSP / PSPgo and Nintndo's DSi have caught on to the scheme and now provide downloadable games, however Apple is already ahead by a mile.

Iwata, claiming that Apple isn't a competitor, understands that the iPhone and iPod Touch pose a potential threat. "If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he told The Wall Street Journal at a recent company event.

Out of the two Apple units, the iPod Touch poses as the larger threat, starting at $199 and requiring no monthly service cellular fee. The Apple App Store also provides over a thousand games ranging from $1 to $10 that can be downloaded from any wireless access. The Nintendo DSi costs around $170, and already provides a large library of games on SD cards stemming back to 2004. The DSi also features Nintendo exclusives such as Mario and Pokemon.

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